Warning! Don't try and claim these three types of interest as a deduction

We all know there are instances where you can claim interest as a tax deduction.

But, what you may not know is you can't claim interest all the time. There are times where it's against the law to claim interest as a deduction. It's important you know what these instances are, so you can comply and avoid SARS penalties.

To help you understand this better, our tax experts give you three examples of when you can't claim interest as a deduction. Let's take a look...

One more example of when you can't claim interest as a deduction

Example #3: Shareholders put money into a company, even though the company doesn't need it.

In this case, SARS may consider the interest on the shareholder loan accounts unproductive. This means you can't claim interest as a deduction.

We hope these three examples have shed some light about when you can't claim interest as a deduction. If you want to examples of when you CAN claim interest as a deduction, check out the Practical Tax Loose Leaf Service.

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Warning! Don't try and claim these three types of interest as a deduction

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